Managing Personal
Communications
Key Concepts
Direct Marketing
The use of consumer-direct
channels to reach and deliver
goods and services to customers
without marketing middlemen.
Direct Marketing Channels
 Direct mail
 Catalogs
 Telemarketing
 Interactive TV
 Kiosks
 Web sites
 Mobile devices
Benefits of Direct Marketing
For consumers:
For marketers:
 Convenience, ease, and
speed of ordering
 Can buy mailing lists for
almost any segment
 Can buy specialty items not
available in local stores
 Customize and personalize
messages
 Build relationships
 Reach the most interested
prospects at the right
moment
 Easily test alternatives and
messages
 Easily measure campaign
results
Direct Mail Decisions
Objectives
Target
markets and
prospects
Testing
elements
Offer
elements
Measuring
success: lifetime
value
Catalog Marketing
 Includes full-line merchandise catalogs, specialty
consumer catalogs, and business catalogs,
usually in print form but also sometimes as CDs,
videos, or online.
 Successful catalog marketing:
 Manage customer lists
 Control inventory
 Offer quality goods
 Project a distinctive image
Telemarketing
Inbound
Telemarketing
Outbound
Telemarketing
Other Media for DirectResponse Marketing
Newspapers
Magazines
Radio
Television
Public and Ethical Issues in
Direct Marketing
 Irritating consumers
 Taking advantage of impulsive, less
sophisticated, or vulnerable consumers
 Misleading communications
 Invasion of privacy
Interactive Marketing
 New electronic channels offer:
 Interaction
 Individualization
 Advantages of the Web:
 Contextual placement of ads
 Rich media ads
Elements of Effective Web
Design (7 Cs Specific Design
Elements)
Context
Content
Community
Customization
Communication
Connection
Commerce
Forms of Interactive Marketing
Web sites
Sponsorships
Microsites
Alliances
Search-related ads
Online communities
Display ads
Email
Online videos and
ads
Mobile marketing
Word of Mouth
Buzz marketing
Viral marketing
Opinion leaders
Blogs
Buzz and Viral Marketing
Buzz marketing
Generates excitement, creates
publicity, and conveys new
relevant brand-related
information through
unexpected or even outrageous
means.
Viral marketing
Encourages consumers to pass
along company-developed
products and services or audio,
video, or written information to
others online.
Opinion Leaders
 Cliques—small groups
whose members
interact frequently.
 Bridges—people who
belong to one clique
and are linked to a
person in another.
 Factors working to
ignite public interest in
an idea:
 Reaching mavens,
connectors, and
salesmen
 Stickiness
 Power of context
Blogs
Regularly updated online journals
or diaries.
Marketing Skills:
How to Start a Buzz Fire
 Identify influential individuals and companies and
devote extra attention to them.
 Supply these key people with product samples to
encourage word of mouth.
 Cultivate contacts with community influentials.
 Develop word-of-mouth referral channels.
 Provide compelling information that people want
to pass along.
Personal Selling and the
Sales Force
 The term sales representative covers six positions:
 Deliverer
 Order taker
 Missionary
 Technician
 Demand creator
 Solution vendor
Major Steps in Effective
Selling
Prospecting and
qualifying
Overcoming objections
Preapproach
Closing
Presentation and
demonstration
Follow up and
maintenance
Designing a Sales Force
Sales Force Objectives and
Strategy
 Tasks:
 Prospecting
 Targeting
 Communicating
 Selling
 Servicing
 Information gathering
 Allocating
 Approach:
 Direct (company sales
force)—consists of full- or
part-time paid employees
who work exclusively for
the firm.
 Contractual sales force—
consists of manufacturers’
reps, sales agents, and
brokers who earn a
commission based on
sales.
Sales Force Structure
Territorial structure
Product or market
structure
Sales Force Size—Workload
Approach
1.
Group customers into size classes by annual sales volume.
2.
Establish call frequencies for each customer class (number of
calls per year).
3.
Multiply the number of accounts in each size class by the call
frequencies (determines total work load or sales calls per
year).
4.
Determine the average number of calls a sales rep can make
per year.
5.
Divide the total annual calls (step 3) by the average annual
calls made by a rep (step 4) to determine how many reps are
needed.
Sales Force Compensation
Fixed amount
Variable amount
Expense allowances
Benefits
Managing the Sales Force
Sales Rep Productivity
 Time-and-duty analysis—helps reps understand
how they spend their time and how they might
increase their productivity.
 Inside sales people:
 Technical support people
 Sales assistants
 Telemarketers
Sales Rep Productivity
 Time-and-duty analysis—helps reps understand
how they spend their time and how they might
increase their productivity.
 Inside sales people:
 Technical support people
 Sales assistants
 Telemarketers
Evaluating Sales
Representatives
 Reports include:

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
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Average number of calls per rep per day
Average sales call time per contact
Average revenue per sales call
Average cost per sales call
Entertainment cost per sales call
Percentage of orders per hundred sales calls
Number of new customers per period
Number of lost customers per period
Sales force cost as a percentage of total sales